My house has been on the market for a week and a half. I got an offer on Monday (well, it was written on Friday - a week after the house was listed - but not delivered till Monday). In the original offer, the buyer had requested a closing date of about 6 weeks from now. That's a pretty aggressive timeline. And it got me running to try to find a home for myself.
Once we started looking for me - more seriously - we started getting into the timing of closings. Because of course there are two closings - one for my current house and one for the new house.
If I close on my current house and then on the second house, I have the advantage of having the money from the sale to put on the next house. Which would allow me to get a conventional loan and have a lower monthly mortgage payment. That would be a good thing.
But if I do that, then I have to put my stuff in storage to be able to turn over my key to the new homeowner at closing. So that the house would be empty for the new owner. Which also means that I need a place for me and the cats for at least a few days. Between putting my stuff in storage and finding a place for me to stay, we're talking quite a bit of money. Not to mention the inconvenience of all of it.
On the other hand, if I close on the new house before I close on the current house, there are other complications. First, I'd have to have an FHA jumbo loan. I can't come up with 10% of my loan amount to get a conventional jumbo loan. And with an FHA jumbo, I wouldn't be able to refinance for 6 months. So my monthly payments would be quite high for the first 6 months. I'd also have to pay closing costs for the refinancing in 6 months.
But...I could potentially move my stuff into the new home before closing on my current house. Meaning that I wouldn't have to pay for storage and a place for the cats and me. And would avoid that inconvenience.
They say that timing is everything. It's going to be interesting to see how this one plays out.
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